Coeur Mining buys New Gold in $7B all-stock merger

Coeur Mining (NYSE: CDE) is acquiring Canada’s New Gold (TSX: NGD) in an all-stock deal valued at about $7 billion, creating a new North American mining heavyweight amid record gold prices and renewed investor enthusiasm for precious metals.

Chicago-based Coeur, which operates mines in the US and Mexico, will combine with New Gold’s two Canadian gold-producing sites to form a company valued at roughly $20 billion. The merged miner will produce an estimated 900,000 ounces of gold and 20 million ounces of silver next year.

The deal strengthens Coeur’s balance sheet and cash flow, giving it greater strategic flexibility, the company said. New Gold’s assets are expected to lower Coeur’s production costs and boost margins.

“With the addition of New Gold’s two Canadian operations to our five current operating mines we expect to generate approximately $3 billion of EBITDA and approximately $2 billion of free cash flow in 2026 at significantly lower overall costs and higher margins,” Coeur CEO Mitchell J. Krebs said in a news release. 

“Just two years ago, Coeur’s full-year EBITDA was $142 million and free cash flow was negative $297 million (…) This transaction accelerates our transformation into a larger, more resilient, lower-cost company.”

Operational synergies, growth

New Gold President and CEO Patrick Godin said the merger will deliver value to shareholders through operational synergies and growth potential.

“It rapidly unlocks the K-Zone at New Afton and enhances exploration at Rainy River, while diversifying our asset base with five high-quality precious metal operations,” Godin said.

Investors will receive 0.4959 Coeur share for each New Gold share, a roughly 16% premium based on Friday’s closing prices. Coeur will maintain New Gold’s Toronto office and seek a Canadian listing.

The merger comes amid a record-setting rally in gold, which climbed above $4,000 an ounce this year and which the sector expects to surpass the $5,000 mark in the next 12 months. Shares of both Coeur and New Gold have tripled in 2025.

Coeur’s shares fell 11.8% on Monday following the announcement of its deal with New Gold. Since the acquisition is structured as an all-share transaction, the drop in Coeur’s stock price erased the premium initially offered to New Gold shareholders. As a result, New Gold’s shares slipped 1% on the Toronto Stock Exchange that same day.